Own Your Own Company? -You Might Want To Consider A Will For Business Owners.

If you don’t already know, a Will is a very important document and is vital to estate planning, ensuring your assets are handled following your wishes when you pass away. However, there are still many people who feel as though they don’t need a Will because of their age. In some instances, many people wait until certain events make them realise just how much they will need a Will.

Making a Will ensures that those you leave behind have clear instructions regarding your wishes. If you are a business owner, then it is even more important to make sure that you have prepared a Will. Have a think about what would happen to your business if you passed away. Who would look after it, who would manage it and what would actually happen to your clients?

The following are a few key points you need to think about a Will for business:

Running the Business

Who would take care of either running the business or winding it up in your absence? Would your children or spouse step in? Would they be able to cope? It is a big responsibility and is something that they may not want or there might be someone you want to run it for but if you didn’t have a Will, this might not happen.

Inheritance Tax Planning

When it comes to inheritance tax planning, there are certain things that must be considered if you own a business, including whether your business qualifies for business property relief. Ensuring your Will is drafted in a tax efficient way could save your loved ones an unnecessary tax bill in the future.

Company Shares

You might own company shares that are subject to pre-emption rights and you may have a cross option agreement in place in respect of this. 

Sole Trader

If you are a sole trader then you might need to consider the effect of your death on your business as it immediately terminates when something happens to you.

Business Interests

You might not realise but your family might not want to be involved in your business and will want to sell the shares if they inherit them. Do the other shareholders in the business have the ability to buy the shares?

Life Cover

You will need to think about life cover as you need an adequate amount of cover to provide for your family and also ensure there are funds available to shareholders to purchase the shares from your estate.

The above shows that it is not only vital to get an appropriate Will for business owners in place but to also ensure you seek advice from a professional.